LexThe Tamil Nadu Co-Operative Land Development Banks Act, 1934
Tamil Nadu · state statute
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The Tamil Nadu Co-Operative Land Development Banks Act, 1934
Act 10 of 1934
Keyword(s):
State Land Development Bank, Primary Land Development Bank, Trustee,
Small Farmer
Amendment appended: 35 of 1979
I934 : T.N, Act X] &operative LMd
Development Banks
TH& WIL NADV CGOPERATIVE LAND
DEVELOPMENT BANKS ACT, 1934,
TABLE OF CONTENTS.
PREAMBLE. (Omitted.)
CHAPTER I-PRELIMINARY.
3. Definitions.
CHAPTER I-A-LAND DEVELOPMENT BANKS,
BOARD AND COMMITTEE.
3-A. State and primary land development banks.
3-B. Election of members oi Board.
3-c. Appointment of Executive Officer and
3-D. Purposes for which loan may be granted.
3-E. Agency of other Co-operative Banks.
3-F. Power to make rules.
CHAPTER II-DEBENTURES.
4. Issue of debentures by the Board.
6. Guarantee by State Governmsnt of princcpal
of, and interest on, debsntures issued under section 4.
7. Guarantee by State Government of principal
of, and interest on, debentures issued before commence-
mant of the Act.
8. Power of Board to make regulations.
934: T.N. Act X
- - CHAPTER' III+D~snumr S, OF PRODUCE
SE~ONS.
9. Distraint when to be made.
10. Distraint how to be effected.
1 1. Sale of property distrained.
12. Power of State Government to make rules,
CHAPI'ER JV-POWER OF SALE.
13. Power cf sale R hcn to be exercised.
c
t 14. 4pplication fcr sale anti manner of sale.
15. Applicati~n to set : side sale on &posit and
confirmation of sale in deL3ult or on dismissal of such
application.
16. Distribution of the proceeds of sale.
17. Certificate to purchnscr.
18. Delivery of propei.ty Lo pu~ cl1'~ser.
19. Right of primary land d1:vcl ,prnent b.mk or
of the Statc Land Dcvelopmenl Bank to purchase the
mortga.ged property at sale.
20. Appointment of receiver and ',is powers,
21. Tillc of purchaser not to oc i:~ipeached on the
ground of irregularity, ctc.
22. Appointment of sale offiw-.
22-A. Recovery of sums clue ro primary laf~d
development bank or Sta tc Land Dcvclop~nenr Bunk.
23. Power of State Government to make rulcs,
CHAPTER V--JV~~~~~~~ NF~US.
23-A, Mortgages execpted in ,favour of primary. '
Y la114 daydopmwt bnnk, etc., to shnd vested j n State
I;srsct. Davolvpmunt:B~nk, ,a i . .. ?it . . ..' . ... '. ','.','...' , I' ".! . L. . .'
r.&' *:'+**
,';w .*
1934 : T.N. Act XJ Co-operadive Land 421
Development .Bmks
SECIIONS,
24. Power of primary land development baa in
case the mortgaged property is wholly or partially
destroyed or the security is rendered insufficient.
25. Pover of Board or of Trustee to direct distraint
and sale of produce and the sale of mortgaged property,
etc.
26. Mortgagor's power to lease.
27. Mortgage not to be questioned on insolvency
of mortgagor.
28. Priority of mortgage over other claims.
2S-A. Verification of cncunibranccs.
29. Right of primary land tlevclopmcnr hank to
pay prior debts of mortgagor.
2%~. Power 10 sllnlinon witnesses ?n(f rcqu isit ion 1 //I
documents. 1 ;
30. Registration of documents executed on behalf
of a primary land development hank oi- of the State
Land De'velnpment Bank.
31. Powcr nl' pri~nary land dcvcl~)pme111 bank lo
receilvc moneys and grant valid tlischarges notwith-
standing nssign:nent of mostgagc tlezd~ to L hc Sla tc
Lm~d Dcvclopmei~t 'nank.
33. Special provi4on R)r mortgage, cxccutcd by
111anngcl.s of joiltt Hindu fitlniliec, knn~sv:ins or Maru-
makkattaynm tarwatlc or tnvnzl~is 0;. of Nalnbudri
illoms, etc.
32-A. (Omi//~>(!.)
32-0. Proof of documents or cntrics in documents, ,'I
33. Cbaptcrs 111 and IV to apply to loans crdv?n:ed
by primary land development ranks from funds not
bonowed from th,e State Land Development Bank.
34. Service of notices under the Act.
35. Sections 102, 103 and 104 of the Transfer ot
Property Act, 1882, to agply to such notices.
:7- -y*w
as . 422 (=aspdratiue la934 : fa. Act rf
Development Banks
S3!crlo1s.
36. Officers of primary land development bariks
and of the State L~nd Development Bank and sale
officers not to bid at sales.
1 36-A. iresting of assets and liabilities.
37. Delegation of certain powers by Board.
38. Power of Board to make regulations.
38-A. Publication of rules, commencement of
rules and placing them before the Legislature.
38-B. Construction of references to " Central
Mortgage Bank " and "mortgage bank."
38-c. Act to override other laws.
.--..< .... '*... ..... . . *A* *A .... "*..*.. . .A. <,&,.*....., A.4...&.+ +"<
&aL-'J.-P , P *W..a48&.+~~U
'FAMIL NADU] Am NO. X OF 1934s.
[THE ~[TAWL NADU CO-OPERATIVE LAND DEVELOP.
MENT BANES ACT], 1934.1
(Received the assent of the Governor on the 17th ,
May 1934, and that of the Governor-General
on the 8th Jdy 1934; the assent of the
Governor-General was fist published in the
Fort St. George Gazette of the 31st July 1934.)
An Act to fadlitate the yorking of Co-operative
'[Land Development Banks] in the S[State of
Tamil Nadu].
1 These words were substituted for the word " Madras" by the
Tamil Nadu Adaptation of Laws Order, 1969, as amended by the
Tamil Nadu Adaptation of Laws (Second Amendment) Order,
1969, which came into force on the 14th January 1969.
1 For Statement of Objects and Reasons, see Fort St. George
Gazette, dated the 7th February 1933--Part IV, pages 20-22.
This Act was extended to the merged State of Pudukkottai by
section 3 of, and the First Schedule to, the Tamil Nadu Merged
. States (Laws) Act, 1949 (Tamil Nadu Act XXXV of 1949).
This Act was extended to the .Kany.&umari district and the
Shencottah taluk of the Tlrunelvel~ d~strict by section 3 of, and the
Schedule to, the Tamil Nadu (Transferred Territory) Extension of
~aws Act, 1957 (Tmjl Nadu Acr XXII of 1957), repealing the wrrts-
pending law In force In that territory.
So much of this Act as was in force on the date of the commence
mant of the Tamil Nadu (Added Temtories) Extension of Laws Act,
1962 (Tamil Nadu Act 14 of 1962) in the State of Madras except in
the added territories was extended to the added terntones by sec-
tion 3 of, and the First Schedule to, the latter Act.
r These words were substituted for t!e words "Tamil Nadu
Co-operative Land Mortgage Banks Act by section 2 (3) of the
Tamil Nadu Co-operative Land Mortgage Banks (Amendmbnt) Act,
1969 (Tamil Nadu Act 14 of 1969).
4 Theso words were substituted for the words '* Land Mortgage
Banks " by section 2 (I), Ibid.
r This expression was .substituted for the expression "
of Madras9* by tho Tam11 Nad* Adaptation of Laws Or=
which was dccmod to have come mto force on the 14th JanuarylP69.
* The preamble was omitted b section 2 (2) of tho Tad Nadp
Cwperat~ve Land Mortgage Bad (Amendment) Act, 1969 (J'd
Nadu Act 14 of 1969).
I
w+w 2
C
424 co-operative Land [la : T.N. Act X
Development Banks
CHAPTER I.
Pre liniinary .
Short title. 1. This Act may be called the '[Tamil Nadu Co-
operative Land Development Banks Act], 1934.
Extent. 2. It extends to the whole of the l[State of Tamil
NaduJ.
Definitions. 3. Tn this Act, unless thcrc is anything repugnant
in the subject or c~ntcst-
((1) 'Board' means the Boarcl of Directors of the
s(Srate Land Dcvclopmcnt Bank);
'[(b) 'Stxtc Lanci Dcvelc,pmcnt Bank' means the
.6Tamli Nadu Co-opcmr i~ l: State Ln~ld Development
Bank, Lilnlted";]
(c) 'commitlec' means in relation to the
L[r:inin~ ! In~~cl dc\clopmcnt bank], the Board of
L)lrcci(>~.\ o, Boarcl of Miinag~rncnt or [he pnchayat or
the commit lcc: of nl:rl~ngenicnt or thc governing body
lo \.+?-,om 111c ~nanag(:nicll( of its affairc IS entrusted ;
__. - - -_ --
I Thc wo,i(s'T,\ri~~l Niulu' w1.e suhsttt~~tcdfor Ilic word 'Madras'
,II the sIis)l t t~t'e by thc l"t1111l NCldu Adni~tdtlon of Laws Order,
1069, nmcndcd hy the T.irnll Nddu Adaptallon of Law3 (Second
\rncndn1cnl) Occlcr, 1969, <rltd thc\c words wcrc subst~tutcd for the
aol di " l',~~ntl N.itlu CO-O~C~~L~IVL' Land Mortgage Banks Act" by
\c.ctci,n 2 (3) ol thc'rnm~l N,ltlu Co-operative L,cirici Mortgage Banks
(,\mcntlmc~l~) hut, 1969 (T.lrn11 Nadrr Act 14 of 1969).
Th15 c\ple\slon was sr~b\titiltcd for the cxp~ession " Presidency
of iMadr,r\" by ll~e Tam11 N:rdtr AGaptatron of Laws Order, 1970,
which w,i\ tlcc~ncd to have come Into force on the 14th January
1969.
4 Tills exprcsstvn was ~uhst~ti~ted for the expression " Central
Mollgage H.rnL" by scclto114 of the Tamil Nadu CO-operative Land
Mortgage l3.1nks (Amendment) Act, 1969 (Tarnil Nadu Act 14 of
1969).
6 This cl.u~,c was substituted for the original clause (b) by section
4 (I), ibid.
6 T~IS cxprcssion was substituted for the axpressio~ '* mortgage, 2 bank " by section 4, ibid.
6r(Jf) small farmcr ' meanc a person o~ ning or
c~lltivating: onc hcctnrc of Innti or Ice\ ;I
(g) ' T~~rstec ' mcnnc thc T1.ustcc 1.cfci rctl to
in scct ion 5.
I
- - --
1 Thi$ clause was substit~ltcd for the original el:~use(c/) by scctlon
3(2) of thcTarnil Nadu Co-opcr,rtiveLand Mortgage Ranks (Anlcntl-
ment) Act, 1969 (Tan111 Natlu Act 13 of 1969).
I
ZThesc words were substitutcd for the word " h4adra.i" by the
Tamil Nadu Adaptation of Laws Order, 1969, as amended by thc
Tamil Nndu Atlaptation of L:tws (Second Amcndmcnt) Ortlcr, 1909.
a The words " Provincial,3overnment " were substitutcd for the
words " Local Gzvernment by the Adaptation Order of 1937 and
the word State was substituted for "Provincial " by the Adapta-
I1
tion Order of 1950.
4This clause was substituted for the original clause by scction
v,, L-
tb
3(3) of the Tamil Nadu Co-operative Land Mortgage Banks (Amend-
ment)Act, 1969(Tmll Nadu Act 14of 1969).
8 Thb clause was inserted by section 3(4), ibid.
\
1
I
~,~~*~~-b"*~- . **i.--**
& q<,T --7 'y4 T*
f ,, d* 12 :,.a''
a
d
[19& : TA. Act x
'[CHAPTER I-A,
Land Development Bmb, Board and Connnittee.
3-A. (1) There shall be a State Land Development
S@w *d Bank for the State of Tamil Nadu and as many primary Pri-9 laad land development banks as may be deemed necessary.
drvel0Pnut
banLs. (2) On and from the date of the commencement of the Tamil Nadu Co-operative Land Mortgage
Banks (Amendment) Act, 1969 (hereinafter referred to
as the Amendment Act), the existing Madras Co-
operative Central Land Mortgage Bank Limited shall
be deemed to be, and shall be, the State Land Develop-
ment Bank.
(3) The Board shall consist of such number of
members to be elected and nominated, as may be
prescribed :
Provided that representation in the Board
shall be given to the weaker sections of society such
as small farmers, Scheduled Castes and Scheduled
Tribes :
Provided also that the number of nominated
members shall not exceed one-fifth of the total number
of members of the Board :
Provided further that the Board constituted
for the first time after the date of commencement
of the Amendment Act shall include the 2[existing
members of the Board of Directors of] the Madras
Co-operative Central Land Mortgage Bank until the
I expiry of their existing term of office.
(4) On and from the date of rhe commencement
of the Amendment Act, every primary land mortgage
bank in existence shall be deemed to be, and shall
be, a primary land development bank and a member
of the State Land Development Bank.
1 Chapter 1-A war lnaerted by section 5 of the Tamil Nadu Co-
optative Land Mortgage Banks (Amendment) Act, 1969 (Tamil
adu Act 14 of 1969).
1934 : f'd. Act XI 60-0 erative ~rmd 45j
P Deve opment B&
(5) Every new primary land development bank
registered after the date of the commencement of the
Amendment Act shall, on such registration, be deemed
to be, and shall be, a member of the State Land
Development Bank :
Provided that any primary land development
bank may, with the approval of the Registrar, be
removed from membership of the State Land Develop-
ment Bank by a resolution of the Board and any
application for obtaining such approval shall be
made within two months from the date of registra-
tion of the primary land development bank.
3-B.'[(l)]The election of the members of the Board Election of i
in respect of each district shall be held at a meeting :z;2rs0f
of the 2[presidents] of the primary land development
banks in that aistrict, at such place and at such time
as may be fixed by the State Government or any
officer authorised oy the State Government and shall
I I
be conducted in the manner prescribed.
I
3[(2) The election of a person as a member
of the Board shall not be called in question on the
ground of the existence of any vacancy for whatever
reason among thc presidentsof theprimary landdevc-
lopment banks.]
3-C. (I) Tlze State Goverrunent may appoint an Appoint.
execbtive officer for the State Land Development Bank merit of
or a manager for any primary land development bank ~~~~'"'
for the purpose of safeguarding the interest of the and
uhareholdcrs or members, for ensuring the proper Mann:~,.
ISoction 3-8 was renumbered as sub-section (1) of that section by
section 3 of the Tamil Nadu CO-operative Land Development Banks
(Amendment) Act, 1970 (Tarn11 Nadu Act 4 of 1970).
'This word was substituted for the word "delegates '' by section
3(i), ibid.
8 This sub-section was added by section 3(ii), ibjd.
I '
pr'.-
T" Wi' . ; ' ..' ,% - $
Ceoperative tand ~1934: T.N. Act X
Development Banks
a. utilisation of the amounts guaranteed by the State
Government, for reducing the overdues of the bank,
i
.F
for impro~ ing the efficiency of the administration of
, . the oank, or f'or such other purpose as the State
I Governmen: may, by general or'special order, specify:
Provided that such pober shall be exercised
afta consulring the bank concer~led.
(2) The executive officer and the manager shall
belong to such cadrc, class or category and shall hold
FUC~ qllalifications and exercise sucll powers and
perform such fi~nctions as inay be prescribeci.
Purposes
for which
loan may be
granted.
Agency
of other
Co-operative
Banks.
Power to
mxke rules
3-D. Thc loans uhich nlay beganted by a prilnar~l
land devc1op:ncnt bank i.r the State Lana Dcvelopnlzot
Bank sha 11 ra!a te to such purposes per.t?ininz to develop-
ment of land as may bc prescribed.
3-E. Th: State Lanil Development Bank or any
pri mary la11L1 clevelop~n~ni bank nlay f~ulction ac rhe
ngcqt ol'nn! GO-opcrarh c hank st~bjcct lo sxch condi-
tions as 111~. Rcgictr-ar ma). hy gcne~xl 01. special or{!ci.,
specify.
3-F. Tllc Shtc Go\c!-ri~iicn~ mny rnaic jules not
i~lcn~lcis\cn! ,.vith this ('kaptcr-
(i) fo; rill: n1;rnhcr of 1ncm13e1.s to bc clcctcd ant1
rlo~ninatctl 10 th:: Roaid ant1 their term of oflcc ;
(ii) Tor rhc lnanlizr of clection and nomination
of rn,:lnhcru to thc Ronr'd ant1 their u.mo~al ;
(iii) <,,I- the election<) office-bearers to the Board; -
(iv) Tor the qualifications, powcr:: and functions
oi' the exect,tivc officcr and manager ;
(v) for the purposes tor wnich loans may be
sanctioned.]
i
1934 : T.N. Act X] Co-operative Land 423
Development Banks
CHAPTER '11. j
t
Debcntutrs.
4. (1) ((I) With thc p .evious sanction of the~ssue of
Trustee, tbe Board inay issue debenturesofoneor rnore debentures by the denominations for such peJods nr it lnay deem ex- &,rd.
psdier~t on the security of the mortgages and other
assets tran3feired '[or deemed under thc provisions of
aectio~i 23-A to have been transferred] by the a[primary
land develop.nent hanks] to the 3[State Land Develop-
ment Bank] and o: ih.: atha; prop2rtie-s ot such Bank.
(h) Such dsbsntmes may contain a term fixing
a p!-iod n>t excseding ten years from the date of issue
durlng which they sllall be irredeemable, or reserving
to the Board the right to call inat any time any of the
debsntures in advance- of the date fixed for redemption
after giving to the debenture-holder concernca not less
than three months' notice in writing.
(2) The total amount due on the debcn-
lurcs ;wed by the Board (~ncluding thaw
~SFLLC~ 13:foi.e the comlnencemcnt of ttlis Act)
and outstanding at any time shall not exceed
lrthe aggregate of (a) the alilounts due on the
inort:ages, and the vnlueof the otllerasset~, transfcrrea
or decmed under the provisions of section 23-A to
hive bccn transrerred by the "l~rimary land develop-
ment oanks] to tre s (State Land Development Bank)
1 This oxpression was inscrtod by section 2(i) of the Madras Co-
opcrativc L~nd h4ortgage Banks (Amcndmcnt) Act, 1950 (Madras
Act IX of 1950).
3 This ~~~)ressioil was si~bititi~ted for tllc exprc\sion " nlortg'Lge
h.rnks" by wction 4 of theTamil Nadu Co-operative Land Mortgage
itanks (Amendment)A&t, 1969(Til.1nilNadu Act 14of 1969).
. aThis expression was substituted for thc expression "Central
Mortgage Bank" by ibid.
4 This W,LV s~tbitituted for the w~l.di "thc total amount duc on the
mortgages, ihc amounts paid thereunder and remaining in the hands
of the Board or of the Trustee at such time and the value of all other
f
Appoint-
ment or
Trustee
and his
powers and
functions.
Ouarantm
by State
Government
of principal
of, and
interest on,
debentures
issued under
section 4.
- -- ---- -
430 Co-operathe
and subsisting at such time and (6) the amounts paid
under the mortgages aforesaid and remaining in the
hands of the Board or of the Trustee at that time].
5. me Registrar, or where the '[State Govern-
ment] appoint any other person in this behalf such
person, shall be the Trustee for the purpose of secu-
ring the fulfilment of the obligations of the YState
Land Development Bank] to the holders of debentures
issued by the Board. The mortgages and other
assets transferred '(or deemed under the provisions of
section 23-A to have been transferred) by the '[primary
land development banks] to the 2[State Land Deve-
lopment Bank] shall vest in the Trustee from the date
of such transfer. The holders of the debentures shall
have a floating charge on all such mortgages and assets,
on the amount paid under such mortgages and remain-
ing in the hands of the Board or of the Trustee and on
the other properties of the '[State Land Development
Bank]. The powers and functions of the Trustee
shall be governed by the instrument of trust executed
between the Bank and the Trustee as modified from
time to time by mutual agreement between the Board
and the Trustee.
6. (1) The principal of, and interest on, the deben-
tures issued under section 4 to such maximum amount
as may be fixed by the '[State Government] and su5-
ject to such co~rditions as they may think fit to
impose shall, subject to the provisions of sub-section
(3, carry the guarantee of the '[State Government]
-
1 The words "Provincial Government " were substituted for the
words "Local Government" by the Adaptation Order of 1937 and
thc word "State " was substituted for "Provincial" by the Adapta.
tion Order of 1950.
a This expregsion was substituted for the expression "Central
Mortgage Bznk" by section 4 of the Tamil Nadu Co-omrltjvc
L ~nd Mortgage Blnks (Amendment) Act, 1969 (Tamil N~du ~~t
14 of 1969).
3 This expression was inserted by section 3 of the Madras co.
operative Land Mortgage Banks (Amendment) Act, 1950 (Madras
Act IX of 1950).
(3) The "State Government] may, after consult-
ing the Board and the Trustee--
(a) by notification in tlie 6[0fficial Gazette], and
(b) by notice for not less than fourteen days
in such of the principal newspapers in the '[State of
Tamil Nadu] and of S(oth>r States) as the 6[State
Governrneml may scl~t in this behalf, discontinue
any guarantee given by them or restrict the maximum
amount thereof or modify the conditions subject to
which it is given. with effect from a specified date, not
being earlier than six months from the date of publi-
cation of the notification in the 6[Official Gazette],
In cases where the maximum amount of the
guarantee is to be restricted or the conditions subjcct
to which the guarantee is given are to be modified,
the notification and notice aforesaid shall sct forth
with sufficient clearness the scope and effect of the res-
triction or modification.
Explanation.-The withdrawal, restriction or
modification of any guarantee under this sub-section,
shall not affect in any way the guarantee carried by any -- - --
1 Thc words " Provincial Government " were substituted for the
words " L?l Go;ernment " by the Adaptati~n Order of ??37 dnd
the word State was shtltuted for Provincial by the
Adaptation Order of 1950.
a These words were substituted for the words " thc Leglslatlve Council *' by the Adaptation Order of 1937.
a This word was substrtuted for the word " ChambersM by the
Adaptation (Amendment) Order of 1950,
4 This word was subst~tutcd for the word " Provincial by the Adaptation Ordcr'pf 1950.
6 The yrds Provincial Gzvernnient " were sub\tituted for the words Local Gorernment by the Adaptation Order of 1937
and the word " State ' was bubstituted for " Provincial " by the
, . ..w ."
4
Co-oprroria W [1934 : T.N-"Act X
Devcloprnm Banks
debentures issued prior to the date on, which such
t withdrawal, restriction or modification takes effecr.
7. The '[State Government1 may, in their
Os discretion, g:Iarhntee t3e principal cf, and the interest
before on, any dzbentures issued before the commznement
commence- of this Act by the Board. subject to such conditions as
Of the the '[State Governm2ntJ may think fit to impose. Act.
Power of 8. The Board may, subject to the approval of the
Board to
make Trustee, make regulations not inconsistent with tlie
regulations. provisims *of this Chapter-
~fr %ing thc psricd of debentures and
rate of inu:rtst payable thxeon ;
(ii) for calling in dtbcntures after giving notice , to debrtqture-1lold:rs ;
(iii) for the iisue of tlcw debe~it~~res in piacc of
dzbent~rzs d'un ~gcd or d:.lrnycd :
(i~) t'or converting OIIC class of debc~lturrs illto
another bwing a diffci.2:;; I .lit of in~c'rcsl ; and
(v) ge11cr~1IIy f01- c~rrying out tlic provisions of
thib Chap~~r.
CHAPTEll l JI.
L)~.slr~:iizt (,,;xi .S(I/~J cfPi.or/iic~~.
Distrain1 9. (1) If ;lny iil taJnl:t~r paynblc u11dl:r :I mortgage
when to be cxccutcd jq fd\ OUI of 1 I>1 1m11.y Iil~ld (Ii\~~loprnc~~t made. bank] or any ptr I or .u:i~ rr~jialn~tn~ has rc-maincd
illlp'iid for m )rc than orlc m 1t1t11 from 1112 d-itc 011
wllicll ~t fell dtic., the ci7nlmiltcc may, ill addrtion lo
any otll:l- renl:cty availablz lo tllc b:lnk, ;lpply to tllc
Rcg~strnr or 10 x!ty pct\,>11 ;~ppoi~ltcd by thc '[State
Go\/?; nrn:llt] irlltl r .:c!,~.:l .> of the MatIra\ Co-c>pcr.a- hl,idras
- - - - --- --
1 The words " 1'1 ovrnc~al G~CI i\ri~cnt " ncrc c.t~l-rst~t~~tcd for the
words " f;ociil Govc~.nmcnt" by tho Ad4iptation Order of 1937 rind
tllc:w~)rd St:~(c "w.i\ subbtifutcd lor" lJrovlnc~,~l *' by thc Ad,ipl,,.
tion Order of 1950.
a Th~s expression wn~ sub\r~tutctl for thc cxlirc\slon "rnortgct2c
bank '' by wtion 4 of thc Tdrnrl N.rdu C~-O?CC.LI~VC Ln~d Mortgage
Banks (Amendfncnt) Act, 1969 (T,tnirl N~du Acl 14 of 1969).
* See II& ,tlx famil Nadu Co-opcrcltivo Societies Act, 15-61
Tamil Nadu Act 53 of 19611,
\
--------
-
1934 : T.N. Act XI Co-operatiue W
Development Bunks /
Central
Act IV
of 18SZ
recovery of such instalment, or part by distraint and
sale of the produce of the mortgaged land including
the standing crops thereon. On receipt of such appli-
cation, the Registrar or such person may, notwith-
standing anything contained in the Transfer of Pro-
perty Act, 1882, take such action as is necessary to
distrain and sell such produce :
Provided thar no distraint shall be made after
he expiry of twelve months from the date on which
zhc instalment fell due.
(2) The distress shall not be excessive ; the value
of the property distrained shall be as nearly as possible,
lequal to the amount due and the expenses of the dis-
'traint and the cost of the sale.
10. (1) Before or at the time when a distraint is Distraiut 1
made under section 9, the distrainer shall serve or I I
cause to be served upon the defaulter a written demand
specifying the amount for which the distraint is madc. i
(2) The demand shall be dated and signed by the
distrainer and shall be served upon the defaulter by
delivering n copy to him or to some adult male member
of his family at his usual place of abode or to his autho-
rized agent, or when such service cannot be effected,
by affixing a copy of the demand on some conspicuous
part of his abode and of his land.
I
11. (I) If . within fifteen days from the date of ser-
vice of the demand referred to in section 10, the de- distniacd. I
faulter does not pay the amoiuit for which the distraint
was effected, the distrainer may sell in auction the dis-
trained property or such part thereof as may in hi&
opinion be necessary to satisfy the demand together.
with the expenses of thc distraint and the cost8 of.
the sale;
(2) From the proceeds of such sate, a deduction
shall be madc at a rate not exceeding '[seven nayq
paise] in the rupee on account of the costs of the
.ale.
I ' These words were ybstitutcd for the words " one anna *' by
I
at ion 2 of. and the ~chdule lo, theTamil Nadu Coinage (4tqntipg
JI Raferancqn) Act, 1969 (Tamil Nadu Act 9 of 1960).
125 -149-24 I
Co-operative Land f1934: T.N. Act X
Development Banks
(3) From the balance shall be deducted the
expenses incurred by the distrainer on account of the
distraint.
(4) The remainder, if any, shall be applied to
the discharge of the amount for which the distraint was
made.
(5) The burplus, if itny, shall be delivered to
the pcrson \thobe property has been sold and h: shall
be given a receipt for the nmount disclu;~rged from the
proceed:, of the snlc.
Powcr of
State 12. The '1S:are Govctnmcnt] may makc ru!? ~:ot Govarnrnent
to make rules ~ncoi~si*tent \I it h this Chapter-
(i) for thc manncr of cKecting di\traint ;
(i i) ]'or 111~ ci~stody. prcserv~t ion JII~ sfle of tllc
distr:~ined properly ; -
(i:i) fill the investig.tt ion of clnin~s by persons
otlicr than the d-faulter to anv right or iiltcrcst in tho
ciistrained propcrty : iund fo~. tllc po\(pnnc~ncnt of th~
sale pending such invest igation ;
(iv) for tl~c imnicdi:ltc s;ile of pcrisliable articles;
:11\d
(v) gc~~cr,tlly fo~ thc purpose of ci~rrying o~11
tlie 1)rovi~ions of this Chi~ptcr.
CHAPTER IV.
Polver c~f Skle.
'7epealed by Central Act XLVIII of 1952.
-*;iir~itylrll.L4L*&~d~1, ----- - -. . .
-*--k..aWu&+<i-
'5' a. -.
?T -. -r
A ***A 1' .
I .' , .
1433: T.N. Act X] Co-operatzve Land 435
Development Banks
expressly conferred on t hk '[primary land development
bankj by the mortgage deed, the committee of such
bank or any person authorized by such committee in
this behalf shall, in case of default of payment of the
mortgage money or any part thereof, have power, in
addition to any other remedy available to the bank,
to bring the mortgaged property to sale without the
intervention of the Court.
I
(2) No such power shall be exercised unless and
unt i 1-
((I) the Board has,previously authorized the
exercise of the power conferred by sub-section (I),
after hearing the objections, if any, of the mortgagor
or mortgagors ;
(b) ~zotice in writing requiring payment of such
niorlgage money or part has been served upon-
(i) the mortgagor or each of the morlgagors;
(ii) any person who has any i~~terest in or
charge 11po11 the property mortgageti or in or upon
rhc right to redeem the same ;
(iii)any surety for the payment of the rno1.t-
gage debt or any part thereof; and
(iv) any creditor of the mortgagor who has
jn a suit for the administration of his estate ohtained
a decrec for sale of the mortgaged property ; and
(c) default has been made in payment of such
mortgage money or part for three months after such
service.
14. (1) In exercise of the powr of sale confcrrod t:",'$Fd
by section 13, the committee of o '[primary land manner of
development bank] or any person duly authorized by sale.
yucll con~mittee, may apply to the sale officer appointed --
1 Thb expression was substituted for the oxpreqion *' mort go
b.nk *# by 4 of tho Tamil Nadu. Co-operattve Land &t.
gap Banks (Amendment) Agt, 1969 Uamd Nadu 4ct 14 of 1969).
25-1 4-28~
'. b
in that bzhalf under section 22 to sell the mortgaged
property or any part thereof and such officer shall,
after giving notice in writing to all the persons
referred to in section 13 sell such property in the
manner prescribed.
(2) The salc shall be by public auction and shall
be held in the village where the mortgaged property
is situated or at the nearest place of public resort if the
sale officer is of opinion that the property is likely to
sell to better advantage there.
Applict@ion IS. (I) When a mortgaged property has been
to set aside so!d under this Chapter, the mortgagor or any person
sale on deposit and having a right or interest th%rein affected by the sal:,
confirmation may, at any time within thirty days from the date of
of sale in
default or on sale. apply to the committee of the I[primary land
dismissal of devclop~iient bank] concerned to have the sale set
SUO~ appli- aside on his depositing at the office of such bank-
cation.
fa) for paymert to the '[primary land deve-
lopment bank], the amount specified in the procla-
mation of sale together with subsequent interest and
the costs, if any, incurred by the bank in bringing the
property to sale ; and
(b) for payment to thc porchaser, a sum equal
to five per cent of the purchase money.
(2) If such deposit is made, the comnlittee shall
make a*rder setting aside the sale,
(3) Where no application is made under sub- section (I) or where'such application is made and dis-
allowed, the committee shall apply to the principal
officer of the co-operative departmept in the district,
to make an order confirming the sale and on such
officer confirming the sale,* it shall become absolute-
1934: T.N. Act X] Co-operatiye Land 437
Development Banks
/
16. (1) The proceeds of every sale under this Distribution
Chapter shall be applied by the sale officer, first in ti :::yeeds
payment of all costs, charges and expenses properly incurred by him as incident to the sale or any attempted
sale ; secondly, in payment of all interest due on
account of the mortgage in consequence whereof the
mortgaged property was sold ; thirdly, in payment of
the principal money due on account of the mortgage ;
and lastly, the residue, if any, shall be paid to the per-
son proving hifnself interested in the property sold, or
if there are more such persons than one, then to such
persons according to their respective interests therein
or upon their jojnt receipt,
(2) (a) Any person dissatisfied with the decision
of the sale officer in regard to the distribution of such
residue may, within thirty days of the communication
to him of such decision, institute a suit in a Court to
establish the right he claims.
(6) The sale officer shall not distribute such
residue until thirty days have elapsed from the com-
munication of his decision to all tile persons concerr~ed
or. if a suit has been instituted within the said period
of thirty days by any such person, irntil the suit is dis-
posed of or otherwise than in, ;iccordancc with the
decision of tho Court lhcrein.
Explunatio?~.-11 this sub-section ' Court ' ~nea~s
the Civil Court which would have jurisdiction to cnter-
tail1 a suit to enforce the niortgitge and within thelimits
of whose jurisdiction the property wld is cituated.
17. Where n snlc of mortgagcd property has be- Certificate to
come absolute, the sale officer shall grant a certificate ~""C"aFero
specifyit~g the property sold and the name of the person
who at the time of the sale is declared to bc the PLW-
chaser. Such certificrtc shall bcnr tiate, the day on
which the sale became ahsolute.
18. (1) Where the mortgaged property sold is in Delivery of
the occupancy of the mortgagor or of some person on property to
his behalf or of some person claiming under a title~'"'"a&Cr'
other than a lease for a period not exceeding five years
\
i?aoperatl~e Land dl934:T.N. ActX
Development Banks
created by the mortgagor subsequent to the mort-
gage in favour of the '[primary land development
bank], and a certificate in respect thereof has been
granted under section 17, tht Court shall, on the appli-
cation of the purchaser, ordcr dtlivery to be made by
puttine such purchaser or any person whom he may
appzint to receive delivery on his behalf, in possession
of the property.
(2) Where the property sold is in the occupancy
of a tcnlint or oiher person entitled to oCcupy the same
and a ccrr~ficare in respect thereof has been granted
under sccrlon 17, the Court shall. on the application
of the purchaser, and after notice to such tenant or
other paon, oldc; delivery to be made by affixing
a copy of the certificate of salt in some conspicuou5
place 011 the property ancl proclairning to the occupant
by beat of drum or othcr customarj mods at sowe
con~enisnt plac;: illat the interest of thc mortgagor has
been tr;inyfcrrcd to the plrclaser.
(2) 111 regard to the cases dealt with in sub-
sections (I ) and ("). the prov~sions ot' rules 97 to 103
of Order SXI of the lir\t schedule to the Code of Civil 1
Procedurt.. 1908. cl1:111 ~nr~ftrti\ n~vtmirii~ and so far as
may bc. ,~pplj.
E.~plrrritrrion.-111 this sectioti, " Cni~rt " shall
have the \rime rneantlli: as in section 1 A.
s This axpmrioa was substituted for the expression "~enlrdi
Mortgage Bank" by ibid.
,193: T.N. Act XI Co-operative Land 439
Developnzent Banks i
1.
1 20. (1) The Board may, on the application of aAwiot /
'[primary land development bank] and under -t of
circumstances in which the power of sale conferred rmiver and '
by section 13 may be exercised, appoint in writing a his powas. ,
receiver of the produce and income of the mortgaged
property or any part thereof and such receiver shall
I
I
be entitled either to take possession of the property
I
C
l
or collect its produce and income, as the case may be,
to retain out of any money realized by him, his expen- I
ses of management including his remuneration, if
any, as fixed by tlte Board, and to apply the balance
in accordance with the provisjons of sub-section (8)
Central of section 69-A of the Transfer of Property Act, 1882,
Act IV
of 1882. (2) A receiver appointed under sub-section (I)
may, for sufficient cause and on application made by
the mortgagor, be removed by the Board. i
(3) A vacancy in the office of the receiver may
be filled up by thc Board.
(4) Nothing in this section shall empower the
Board to appoint a rccciver where the mortgaged
propcltj is already in the possescion of a receive:
appointcct by a Civil Court.
21. \Vllell a s:i\c has bee11 made in professed
exerci\t. of a power of snlc LLI\~C~ sect ion 1 3 and has Title of purchaser beell conlirmcd under sub-section (3) of section 1 5, to ba
the t~l\r: the purcltiirer shall not be impeachable on irnpeachd
the gsoiinc\ tlmt no case had arisen to authorize the '$Edor
sale 01. \hat due nc3tice was not given or that tlre power imegula~ty,
Wac, ntlacr~isc improperly or irregularly exercised but etc.
ally person damni lied by an unauthorized or improper I
or il-rcylar exercise of tltc power shall have his
in tiamages nsaillst the! l[primary land
clev:lopmm"thnnb]. I
22. The Registrar may appoint sale oficers for I
the pllrroreofarnd~cti~~g sales under tlrischaptcr. ~~~~&ajd __- . -.-- --
1 This expression was Subqtit~tcd for tho expression "mort- offlc)r 1
gagebank* by secti~n4 of thtr Tamil Nadu Co-operative Land
~~~tg~g,, Banks (Amendment) Act, 1969 (Tamil Nadu Act 14 of
1969). I
1. I
1 $*i
eo-operative tmd [i931: T.N. Act X
Development Banks
purposes of such recovery the Registrar shall have the
powers of a Collector under the '[Tamil NadulRevenue
Recovery Act, 1864 (*[Tamil Nadu] Act I1 of 1864).
(2) Where any sun1 due to any "primary land
development bank1 or the '[State Land Development
Bank] is recoverable from any debtor and the
immovable property of such debtor is brought to sale
under the provisions of the '[Tamil Nadu] Revenue
Recovery Act, 1864 ('[Tamil Nadu] Act I1 of 1864) and
the '[primary land development bank] or the "State
Land Development Bank] is the purchaser at such sale,
the psovisiolls of section 36 of the said Act shall
apply thereto as if for the third clause thereof the
following clause was sub\tituted, namely :-
" Tliirt1.-The sum due to the purchaser shall be
set off, in whole or in part, asainst the purchase money &
'tnd the reniai~~cler. if any, of the purchase money shall!
be paid to thc Collector or other officer empowered
I)y the Collectc\r in that behalf within thirty days of
the date of sale."]
-- -- -- - - .- - - -
1 This section wa? inserted by ~ection 2 of the Tamil Nadu Co- -
operative Land Mortgage Bank\ (Amendment) Act, 1968 (Tamil
Nadu Act 17 of 1068).
2 This cxpres4on was substituted for the expression " mortgage
bank " by scclion 4 of theTamil Nadu Co-operative Land Mortgage
Rnnks (Amendment) Act, 1969 (T.ctnil Nadu Act 14 of 1969).
8 This axpres~ion was substituted for the expre5sion " Central
Mortgage Bank " by ihid.
The words ware substituted for the word " Madras" by the
Tan~ilNadu Adaptation of Lawc Order, 1969, as amendod by tk.
Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1969,
w\iichramr into force on tho 14th January 1969.
A
441 i
Development Banks I
/
23. The '[State Government] may make rules not Power of
, lriconsistent with this Chapter- State
Government
to make (i) for the due proclamation and corlduct of therules.
sale ;
(ii) for the recovery of the expenses of proclama-
tion and sale;
(iii) for the deposit of the purchase money;
(iv) for the resale of the property, if the purchase
money is not deposited ; and
(v) generally for $arrying out the provision. ot'
this Chapter.
CHAPTER V.
Jfiscellaneous.
¶[23-A. The mortgages executed in favour of, and Mortgages
all other assets transfirred to, a ' [primary land in favour of development bank] by the members thereof shall, r[pr,,,ary
with effect from the date of such execution or transfer, land deve-
be deemed to have been transferred by such ~apn"~~''~,,.,
'iprimary land development bank] to the 'I State to stand
Land Development Bank]. *[State vested in Land
Development
Bank].
A.
1 The words " Provincia!~ovenunent " were substituted for the
words " Local Government by the Adaptation Order of 1937 and
theword "State" was substituted for " Provincial " by tho Adapta-
tion Order of 1950.
This section was inserted by section 4 of the Madras Co-operative
Land Mortgage Banks (Amendment) Act, 1950 (Madras Act TX
of 1950). -
J ms oxpreesioa was substituted for the axpression mortgage
bank" by section 4 of the Tamil Nadu Co-operative Land Mortgage
Banks (Amendment) Act, 1969 Pamil Nadu Act 14 of 1969).
4 This expryion was substituted for the axpression " Central
Mertp~o Bank by ibid.
Co-operatfie Land [I934 ; T.N.' Act X
Developinent Banks
Powers of 24. Where any property mortgaged to a '[primary
'[primav ' land development bank] is wholly or- partially des- land devs Iopment bank] troyed or the security is rendered insufficient and
in case the mortgagor, having been given a reasonable oppor-
the mort-
gaged tunity by the committee of the '[prin~ary land develop-
property is ment bank], of providing further security enough to
whollyor render the whole security sufficient or of repaying partially destroyed such portion of the loan as may be determined by
or the ths committee, has failed to provide such security
security is or to repay such portion of the loan, the whole of the rendered insufficient. loan shall be deemed to fall due at once and the corn-
mittee sl~all be entitled to take action against the
n.~ortgagor under section 9 or section 13 for the reco-
very thereof.
Explanation.--A security is insufficient within the
meaning of thi.; section unless the value of the mortga-
ged property exceeds the amount for the time being
due on the mortgage by such proportion as may be
specified in the by-laws of the '[primary land deve-
lopment bank].
25. (1) The Board or thc Tru<tee may direct the
committee of a '[primary Inr~d development bank] to Board or of
Trustee to take action against a defiiulte~. v~lder scction 9, section
direct 13 or sc:tio~\ %and if tlxc committee neglects or fails
distralnt and do 50, the Board '01. t l~c Trl~si~cc rnay take such sale of
produce and ncticn.
the sale of
mortgaged (2) (a) Wltcre sucl\ actlion is takcn by the Board,
property, t,\le provisions of this Act and of any rules or rcgula-
cto. t~ions made tjhereunder shall apply in respect t~hcreto
as if all references to tl\\c '[primary land developmcnt~
bank] and tto it4s commi~tlec in the said provisions
t\ ere references to tll1e ?[Stlatle Land Developn~e~~t~
Bank] and t~he Board respect ivcly.
(b) Where such act ion is laken by the Trustee,
the provis'ons of this Acl* and of any r~ilcs or regulations
made thereunder shall apply in respectl thereto as if ----- - -
1 This expression was substituted for the cxprasion " mortgage
bank " by section 4 of the Tamil Nadu Co-operative Land Mortgage
Banks (Ammdment) Act, 1969 (Tamil Nadu Act 14 of 1969).
8 This expression was suhstitutcd for the expression "Centrdl
Mortgage Bank" by ibid.
*... ,.*.. &...
-~~u~.~w~w..L~LL. -*,,db.*+IYYPW- ..&' ..--. .'.
1934: T.N. Act XI Co-oPeratrve ~arld 433
Development Baltks
I
/'
all references to the '[primary land development bank]
or to itvs committee in the said provisions were refer-
ences to the Tri~stee.
Central 26. Notwithstanding anything contained in the r;:;:f$fs ktIV Transfer of Property Act, 1882, the duration of any I
lease executed by a mortgagor of property mortgaged
to a '[primary land development bank] after tile execu- I
tion of the mortgage shall in no case exceed five years. I
27. Notwithstanding anything contained in the Mortgaee
Central P~esidcncy Town4 insolvency Act, 1969, or the Pro- not to be
vincinl Ia~olvency Act, 1920, a mortgage executed in :'eg$-ed
central ravour of a '[primnry land development bank] shall 01.
Act" IIO~ be called in cluestion on the ground that it was niortgaeor.
of 1920' not c~c'c~~tcd in good faith for valuable consideratton
~r on the groiu~d that it was executed in orde~ to give
tile '[primary land devclopnicnt bank] a pretere~~ce
over rl~c other cred~to~,\ of thc niortFagor.
28. '1(1)1 A rnortgngc e\c~ufed in favour of a 2[Prio~ity or
'rpt iniary Innd de\clnpmcnt brink I nftcr the comtiicnce- mortgage
o\ cr other
n:ent ol' 111:\ Act \I1311 II;I>.c l>tio~ity over itny clattn cI.tirn\ I
OS tllc (;OVCI.IIIIICIII arising fro111 ;1 loan ititdcr ~IIC
.nrl, LntlLl Imp! o\enlc.~i Loans Ac!, 1 883. rrni\tccl aftcr
,A,G~ XLX thc c\i-culion c.1 (lit 11io1 t?,lpc..
'[(3) W~tlio~~t l>rcj~i(l*c.c lo thc piwvi\~ons ol'
CLII>-\CL. lt)ll (I). ,11l<I :I(II\\'!~I~\~:~I~cIIIIP iltt).1I1111~ COII-
tllincd III tllc 4lTa111ll N~cl11l CO-OI>CI-;LCI\CSOCIC~~C\ Act.
1961 (41 r;~~nil N'tdr~ I Act 5.3 of 196 I) ot 111 arty other
Inw for the tttne being in fo~.cc, :i ~iiortgagc cxccuted -
1 c\pres\lon u.t\ aub~titu~cd for he cxprc\sion "mol tg ~gc
bdllk h\ \CC~II~II 4 01 I~IC T,III~I~ V~du Co-opc~~.cl!\c i .~nd Morr-
g.lge H31ih\ (~\rnend~iienr) Act. 1000 (7',lrnil Nadu Act 14 of 196'))
Scc.11011 28 ren~l~libereil .IS aub-wction (1) or tl~nt xction
and 1111. ~n.irginal he.ld~ng \\.ah \~th~t~ttttccl by re~llon 3 (a) of the
'r,rn~il N$~tlit C'o-oper,lti\ J I and hlnrtg.\gc H,~nk\ (AmendmeExcerpt shown. Open the full act in Lexace.